Tag Archives: Jundee

MLG Oz bolsters NSR Jundee work, adds Norton Gold Fields and Mincor to contract mix

MLG Oz says it continues to experience historically high levels of tendering opportunities for its suite of mining services, with three new integrated site services and haulage contracts recently added to its remit across its Western Australia operations.

MLG, which listed on the ASX earlier this year, says it offers a range of value added services from bulk haulage, crushing and screening, aggregate and sand supplies through to export logistics.

At Northern Star’s Jundee gold operation in Western Australia, the company has been awarded preferred contractor status for an expansion of its services, providing integrated site support and haulage capacity at the mine. Subject to negotiation and execution, this new three-year contract is expected to commence around August and deliver some A$12 million/y ($9.2 million/y) in revenue.

The scope of works will consist of integrated site support to the company’s mill feed operations from both its Jundee central underground mines and its regional satellite operations, MLG said. It will see the ASX-listed contractor conduct all crusher feed, bulk haulage and site civil works for the operations under its integrated operating platform.

MLG has added two new clients to its roster, too – Norton Gold Fields and Mincor Resources.

Norton Gold Fields has chosen MLG as its successful tenderer to provide integrated site support services and haulage for its Paddington gold operation over a three-year period expected to commence in September. Revenue from this opportunity is estimated to be around A$14 million/y, with formal contract documentation anticipated to be finalised in the coming weeks.

And, in line with MLG’s desire to broaden its service offering across different commodities and, in particular, the battery metals space, it has executed a contract with Mincor Resources for the provision of the logistics services associated with its Kambalda nickel operation. The contract is expected to deliver approximately A$3 million/y in revenue over four years and is expected to commence in the March quarter of 2022.

Reviewing these contract awards, MLG Founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be given the opportunity to continue to support and grow with Northern Star which has been a long-standing customer of MLG.

“We are delighted that the Norton Gold Fields Board has selected MLG to support the Paddington processing facility. The mill is 35 km northwest of Kalgoorlie and aligns very strongly with our existing Kalgoorlie network.

“Our new contract at the Kambalda operations is an important first step for MLG in developing a longer-term relationship with Mincor in support of its goal of being a key supplier of nickel to the emerging battery metals market.”

In addition to announcing these contract awards, MLG also provided a market update on its crushing and screening activities.

It said: “MLG’s crushing and screening operations, which account for 20% of MLG’s forecast financial year 2021 revenue of A$241.6 million, have experienced a reduction in available material to process from several clients across the last quarter of financial year 2021, due to production constraints at various client operations. We anticipate this will negatively impact the crushing and screening revenue in the first half of financial year 2022. Despite this, and given the company’s current pipeline, including as evidenced above, the board expects the overall impact of this to be mitigated in the second half of financial year 2022.”

Sandvik’s DD421i face drills go dual control in joint development with Byrnecut Australia

Sandvik has released a new Dual Controls package to improve fleet optimisation, versatility and performance for its leading Sandvik DD422i and Sandvik DD422iE face drills.

The Dual Controls package was designed to address a wide range of needs identified by mining contractors currently using development drills for a variety of tasks including boring, bolting and meshing, the company said.

This option combines better drilling intelligence with readiness to sustain rough, multi-task usage, with development of the Dual Controls concept carried out in close cooperation with Byrnecut, a leading global mining contractor.

“Sandvik approached us to give feedback on the development of the machine, which we were happy to do,” Pat Boniwell, Managing Director of Byrnecut Australia, said. “Our key operators, trainers and technical people were involved in that process.”

Johannes Välivaara, Product Manager, underground development drills at Sandvik Mining and Rock Solutions, says many Sandvik customers, particularly mining contractors, have been using conventional Sandvik DD421 hydraulic controlled jumbos side-by-side with intelligent Sandvik DD422i and Sandvik DD422iE drill rigs.

“In this arrangement, the hydraulic drills are used for required ground support work, whereas intelligent drills are used for boring purposes, delivering long and accurate rounds with minimised overbreak,” he says. “Combined with Sandvik automation, the intelligent drills can maintain production even during shift changes. We wanted to challenge this paradigm with the new Sandvik DD422i Dual Controls package in order to make it a preferable option vis-à-vis traditional hydraulic controlled drills, allowing a single platform like Sandvik DD422i or Sandvik DD422iE to be used for multiple and different applications.”

To this end, Sandvik partnered with Byrnecut Australia to design what the company considers to be the revolutionary solution required to address the challenging and wide ranging needs of mining contractors for optimising their drill rig fleets.

“Operator safety and usability was the main focus of the design, as this is particularly important within multi-task operations, where the operator needs be comfortable in using the machine for both ground support and standard face drilling purposes,” Välivaara says. “We took our newest cabin design as benchmark and analysed what changes were required to the drilling controls to make it a preferable option over Sandvik DD421.”

These changes, combined with drastically reduced noise levels, improved drilling visibility and several other improvements, capitalise on the best features of Sandvik DD421, Sandvik DD422i and Sandvik DD422iE rigs, Sandvik says.

“The torque drilling control system has proven its performance in providing best possible drilling productivity while simultaneously reducing the costs of drilling consumables,” Välivaara says. “We wanted to make these benefits available for the ground support applications as well. The SB60 booms combined with Sandvik split feeds have long been the industry preference, particularly in Australian mining applications. This configuration allows us to provide both drilling intelligence and robustness packaged seamlessly together.”

A single platform for different drilling applications offers several other benefits, such as increased commonalities in spare parts, service principles and general ease of use across the whole fleet, according to Sandvik.

“With the updated Sandvik DD422i package options, our customers may choose from multiple specifications to suit their application needs,” Välivaara says. “This includes either; the Platinum option with long fixed feeds, with capabilities for full face drilling automation; or the new Dual Controls with split feeds, for manual multi-task operations. This provides modular options for the boom and drilling assemblies, whilst the carrier and cabin remain standardised.”

The new unit also comes with a battery-electric driveline as an option for improving sustainability.

“We launched the industry’s first highly intelligent mining jumbo with electric driveline system, and since then these units have performed in multiple mine operations globally,” Välivaara says. “Combining this technology with the Dual Controls package creates a truly viable diesel alternative.”

Development work for the Dual Controls package, including a usability study in Australia, was carried out in close cooperation between Sandvik experts and Byrnecut Australia. The combined team tested various drilling controls and concepts in a virtual simulator. This allowed the design process to be highly iterative, enabling new ideas to be easily implemented and validated before commencing the construction of the first prototype unit. Once the prototype was tested extensively at the Sandvik test mine in Tampere, Finland, it was shipped to Australia to validate its performance in real mine conditions and operations.

“The first Sandvik DD422i Dual Controls unit was field tested at the Jundee gold mine (owned by Northern Star Resources) in Western Australia in close cooperation with Byrnecut,” Välivaara says. “We wanted to compare its performance within true multi-task operations against Sandvik DD421.”

Dual Controls package tests were completed over four months with impressive results, the companies said.

“We’re seeing approximately a 10% improvement in productivity and nearly 20% improvement on drill consumable costs,” Boniwell says. “The operators really like the upgraded platform; everything from the improved cab ergonomics, sound reduction and general comfort of the machine. They’ve got all the benefits they’ve had historically in terms of usability, with the additional benefits of improved drill control, and future potential automation sequences.”

He added: “One of the best things to come out of the trial has been the interaction between the two parties. The operators can see that their feedback has directly resulted in changes to the machine, which has gone a long way in making the operator acceptance almost seamless.”

DRA under budget and ahead of schedule at NST’s Jundee expansion project

DRA Global says it has completed its engineering, procurement and construction management (EPCM) contract under budget and ahead of time for Northern Star Resources at the Jundee gold mine, near Wiluna, Western Australia.

The Jundee mining operation is situated in the Northern Yandal Greenstone Belt, with the mine yielding a record 300,000 oz for Northern Star in the year ending June 30, 2020.

Jundee’s processing circuit comprises a two-stage crushing circuit, SAG and ball mill, and conventional carbon-in-leach plant. The ball mill upgrade, undertaken by DRA, increased processing plant capacity to a nominal design throughput rate of 2.7 Mt/y, from 2.2 Mt/y.

DRA delivered the EPCM project scope under budget and ahead of time, with ore commissioning achieved some six weeks ahead of schedule in a total duration of 35 weeks, it said.

“DRA’s project team achieved this outcome by working in close collaboration with the Northern Star project and operations team, the equipment vendors and construction sub-contractors,” it said.

Delivery of the project required overcoming challenges presented by the COVID-19 pandemic, including risk mitigation strategies being initiated to maintain the accelerated project schedule, according to the company.

Northern Star’s General Manager Processing, Simon Tyrrell, said DRA had consistently met and exceeded performance expectations through a collaborative approach to the Jundee ball mill project delivery.

DRA was engaged on the EPCM contract after having completed an engineering and cost study which included scope definition, design, planning, capital and operating cost estimation. The project follows several previous plant upgrades and studies successfully completed by DRA at the Jundee gold mine, which have contributed towards the continuous production growth seen at the mine over the last four-to-five years, DRA said.

The process plant shutdown and tie-in of the new ball mill was performed in conjunction with the Northern Star operations team and contractors without incident, and the process plant has since ramped up to run consistently above nameplate design capacity, the company added.

Swick Mining continues drilling wins at home and abroad

Swick Mining Services is celebrating a hat-trick of contract drilling wins with the Barrick Gold and Newmont Goldcorp-owned Nevada Gold Mines JV, Silver Lake Resources and Northern Star Resources.

The Australia-listed contractor has been awarded a three-year contract extension at the Nevada Gold Mines JV, with the company’s US division extending a relationship that started in 2013. The work with Silver Lake Resources involved being selected as the preferred tenderer, subject to contract execution, to provide underground diamond coring services at its Mount Monger operation, in Western Australia. And, lastly, Northern Star Resources has increased the scope of work for Swick at the Jundee gold mine, also in Western Australia, from nine to 14 full time underground diamond coring rigs.

The awards secure work for 18 rigs (eight existing and 10 additional rigs) and increases Swick’s contracted work in hand to A$353 million ($248 million), the company said.

Swick Managing Director, Kent Swick, said: “We are delighted to be deepening our relationships with existing clients and, in the case of the new work with Silver Lake, returning to a project where we have extensive experience.”

He added: “It is particularly pleasing that our international strategy is yielding significant results, with a third of our total deployed underground diamond drilling rigs now operating outside of Australia. By the end of September, we will have at least 22 rigs operating in our international operations including the USA, Portugal and Spain – all at major mines with Tier One clients.”

In Nevada with the Nevada Gold Mines JV, Swick currently operates eight rigs between the Turquoise Ridge and Cortez Hill gold mines as well as the Goldrush project, it said. As part of the contract extension, Swick will be deploying two additional rigs to these operations.

Swick undertakes underground diamond core drilling and underground RC drilling at the projects, with the contract extension securing work for 10 rigs at fixed pricing for two years, with a rise and fall applicable for the third year. In total, the Nevada Gold Mines JV produced in excess of 4 Moz of gold in 2018, more than double the next largest gold mining complex.

The contract extension, combined with the contract recently awarded to Swick at the Northern Star-owned Pogo gold mine in Alaska, will see Swick take a leading position in the US underground drilling market, it said, adding that the first four underground rigs at Pogo commenced drilling in June.

The Silver Lake Mount Monger contract is expected to be for a period of two years with a provision for a 12-month extension, Swick said. The contract will commence in August, with three rigs undertaking drilling across the Mount Monger site, namely the Daisy Milano, Cock-eyed Bob and Maxwell’s underground mines.

Swick says it worked at the Daisy Milano project for a decade from 2007 before it was awarded to another contractor in 2016. The Mount Monger operations produced 35,172 oz of gold in the March quarter.

At Jundee, meanwhile, Swick says it will steadily increase its fleet and manning from July to October to meet the increased scope. Northern Star is Swick’s largest client – with the Jundee contract Swick’s largest ever project – and will operate this expanded service under the current contract agreement.

Kent Swick said: “Once we reach 14 full time rigs at Jundee, it will represent a record number of rigs that Swick has had at any one mine, and the largest Australian underground diamond drilling program I am aware of since we have been in the underground contracting business for over 20 years.”

Zenith Energy completes Jundee power station expansion for Northern Star

Independent power producer, Zenith Energy has completed and commissioned its 6 MW build own and operate (BOO) power station expansion at Northern Star Resources’ Jundee gold mine, in the northern Goldfields region of Western Australia.

The 6 MW of expansion capacity at Jundee adds to the existing 19.2 MW, increasing Zenith’s BOO capacity to 25.2 MW, Zenith said. The power station comprises an upgrade to the existing facility with the installation of an added 6 MW of Jenbacher 620 Spark Ignittion gas generator technology.

The station incorporates natural gas fuelled generators, which will provide the Jundee mine with highly efficient, cost effective and clean gas fuelled power generation into the future, according to Zenith.

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.8 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and CIP process, achieving 92% recoveries. Northern Star produced 285,000 oz of gold at Jundee in its 2018 financial year.

Zenith said: “This project demonstrates the company’s ability to design, construct, install and commission expansion projects to meet our existing customers’ changing power supply requirements.”

The full commissioning of the Jundee expansion delivers a 6 MW uplift in installed BOO MW capacity in the company’s portfolio, and a corresponding uplift in revenue from the September quarter and going forward, Zenith said.

With the completion of the Jundee expansion, Zenith has established a strong track record for project delivery, with its portfolio of 219 MW of contracted BOO capacity and a total of 438 MW of total power generation capacity under control, it said.

Zenith Managing Director, Hamish Moffat, said: “We are proud to continue our partnership with Northern Star Resources at Jundee through the delivery of the Jundee Expansion Project, and now look forward to delivering additional reliable, cost effective power to support the Jundee gold mine.”

Zenith to supply more power to NSR’s Jundee gold mine

Zenith Energy has executed an amendment to the power purchase agreement (PPA) it had in place with Northern Star Resources for the Jundee gold mine in Western Australia.

The new pact will see Zenith add another 6 MW of installed capacity in the power station at Jundee and bring the ASX-listed power company’s overall build own operate (BOO) capacity to more than 189 MW.

Under the amend terms of the PPA, Zenith will BOO an expanded 24 MW power station for Jundee, located in the northern Greenfields region of WA. The power station will comprise an upgrade to the existing facility with the installation of an added 6 MW of Jenbacher 620 Spark Ignittion gas generator technology.

The station incorporates natural gas fuelled generators, which will provide the Jundee mine with highly efficient, cost effective and clean gas fuelled power generation into the future, according to Zenith.

The amended PPA is expected to have a supply commencement date of the March quarter and a 10-year term aligned with the existing PPA.

Zenith Energy’s Managing Director, Hamish Moffat said: “We are delighted to sign this PPA amendment with Northern Star, which further demonstrates Zenith Energy’s ability to build strong, long-lasting relationships with Tier One clients such as Northern Star Resources through the continued delivery of excellence in safe, innovative, reliable, highly efficient and cost-effective power generation solutions to support the diverse needs of our resources clients in demanding remote locations.”

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.35 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and CIP process achieving 92% recoveries.

The company produced 285,000 oz of gold in its last financial year from Jundee.